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Schwab (SCHW) January Client Assets Up Y/Y on Market Volatility
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Charles Schwab (SCHW - Free Report) released its activity report for January 2022. Total client assets were $7.80 trillion, down 4% from December 2021 but up 15% from January 2021. The year-over-year improvement was mainly driven by extreme market volatility.
Client assets receiving ongoing advisory services were $3.9243 trillion, down 3% from the prior month but up 18% year over year. Schwab’s core net new assets were $33.6 billion in the reported month. This reflected a plunge of 58% from the previous month and 2% year over year.
Schwab’s average interest-earning assets of $623 billion rose 3% from December 2021 and 20% year over year. Average margin balances were $86.7 billion, falling 2% from the previous month but surging 38% on a year-over-year basis. Average bank deposit account balances totaled $157.7 billion, up 2% from the previous month but down 6% from January 2021.
Schwab opened 426,000 new brokerage accounts in January 2022, declining 10% sequentially and 61% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.3 million at the end of January 2022, in line on a sequential basis and up 9% from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% sequentially and 7% from January 2021. Likewise, the number of corporate retirement plan participants was up 1% from the prior-month level and 7% year over year to 2.2 million.
Schwab’s inorganic growth efforts have reinforced its position as a leading brokerage player and are expected to be accretive to earnings. By offering commission-free trading, the company has witnessed a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
Over the past year, shares of Schwab have jumped 50.8%, outperforming 20.2% rise of the industry.
A couple of other brokerage firms that have come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Tradeweb Markets Inc. (TW - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for January 2022. The segment (that deals with the clearance and settlement of trades for individual and institutional clients globally) reported a surge in client Daily Average Revenue Trades (DARTs) both on a sequential basis, while the same declined on a year-over-year basis.
IBKR’s total client DARTs were 2,621,000, which grew 18% from December 2021 but declined 20% from January 2021.
Tradeweb Markets reported total trading volume of $22.3 trillion in January 2022. Average daily volumes (ADV) were $1.12 trillion, up 7.6% year over year.
In the reported month, fully electronic share for U.S High Yield TRACE set a Tradeweb record of 8.2%. Also, TW set a new ADV record in European government bond trading.
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Schwab (SCHW) January Client Assets Up Y/Y on Market Volatility
Charles Schwab (SCHW - Free Report) released its activity report for January 2022. Total client assets were $7.80 trillion, down 4% from December 2021 but up 15% from January 2021. The year-over-year improvement was mainly driven by extreme market volatility.
Client assets receiving ongoing advisory services were $3.9243 trillion, down 3% from the prior month but up 18% year over year. Schwab’s core net new assets were $33.6 billion in the reported month. This reflected a plunge of 58% from the previous month and 2% year over year.
Schwab’s average interest-earning assets of $623 billion rose 3% from December 2021 and 20% year over year. Average margin balances were $86.7 billion, falling 2% from the previous month but surging 38% on a year-over-year basis. Average bank deposit account balances totaled $157.7 billion, up 2% from the previous month but down 6% from January 2021.
Schwab opened 426,000 new brokerage accounts in January 2022, declining 10% sequentially and 61% from the year-earlier month.
Schwab’s active brokerage accounts totaled 33.3 million at the end of January 2022, in line on a sequential basis and up 9% from the year-ago month. Clients’ banking accounts were 1.6 million, up 1% sequentially and 7% from January 2021. Likewise, the number of corporate retirement plan participants was up 1% from the prior-month level and 7% year over year to 2.2 million.
Schwab’s inorganic growth efforts have reinforced its position as a leading brokerage player and are expected to be accretive to earnings. By offering commission-free trading, the company has witnessed a rise in client assets and brokerage accounts, which, in turn, is improving its market share.
Over the past year, shares of Schwab have jumped 50.8%, outperforming 20.2% rise of the industry.
Currently, Schwab carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
A couple of other brokerage firms that have come out with monthly data are Interactive Brokers Group (IBKR - Free Report) and Tradeweb Markets Inc. (TW - Free Report) .
Interactive Brokers’ Electronic Brokerage segment announced performance metrics for January 2022. The segment (that deals with the clearance and settlement of trades for individual and institutional clients globally) reported a surge in client Daily Average Revenue Trades (DARTs) both on a sequential basis, while the same declined on a year-over-year basis.
IBKR’s total client DARTs were 2,621,000, which grew 18% from December 2021 but declined 20% from January 2021.
Tradeweb Markets reported total trading volume of $22.3 trillion in January 2022. Average daily volumes (ADV) were $1.12 trillion, up 7.6% year over year.
In the reported month, fully electronic share for U.S High Yield TRACE set a Tradeweb record of 8.2%. Also, TW set a new ADV record in European government bond trading.